Ohio Valley Chapter September 28, 2015 Great Oaks Institute of Technology and Career Development Center Ernie Strawser, PFR Consultant PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 1
On-line Copy of Presentation http://www.pfrcfo.com/presentations/ PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 2
Agenda Enrollment and the LSC Simulations State Share Index and Wealth Indicators Starting with Enrollment Head Counts Calculating State Share Index Other State Funding Formula Enhancements Targeted Assistance Agricultural Capacity Aid Transportation Supplement Valuations and State Share Guarantee, Cap, Outside the Cap PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 3
Simulated ADM Vs. FINAL 15 SFPR For this grouping of districts the ADM ratio ranges from an LSC estimate that is 95.2% of Final 15 SFPR and a high of 104.6%. PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 4
State Share Index Taxpayer Income, Per Pupil Valuation, ADM(?) State Share Index is primarily driven by per pupil valuation, if the Income Index is lower than the district s PPV index then additional help is received, in all cases, increasing/ decreasing enrollment will impact the SSI. Statewide Median Income in 2015: $32,180 Statewide Per Pupil Valuation in 2015: $140,299 PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 5
Enrollment Start with Head Count Tip: When using manual headcounts, do year-over-year comparisons for the same time period. EMIS TIP: Year-long enroll/withdrawal tracking may lower head count ADM for formula purposes. PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 6
ADM and Calculating Core Aid Wealth calculations use prior year adjusted total ADM. Total ADM does not include reduction for CTC ADM. Per pupil funding based upon current year s formula ADM. PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 7
Targeted Assistance Wealth & Agricultural Districts qualify for targeted assistance if their wealth per pupil (PPV and PPFAGI) is less than 80 th percentile of statewide. Districts qualify for agricultural assistance if their Ag valuation % relative to total real valuation is greater than 10%. Statewide Wealth Per Pupil 2015: $153,659 Statewide Threshold Wealth Per Pupil in 2015: $191,218 PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 8
Targeted Assistance PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 9
Targeted Agricultural Assistance PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 10
Small District (Capacity Aid) & Low Enrollment Density (Transp. Supplement) Districts qualify if one mill of valuation raises less than $212,595 (est.) in revenue. Districts qualify for transportation supplement if they have fewer than 35 students per square mile in 16 and 50 student in 17. PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 11
Small/Rural Capacity Aid & Transportation Supplement Capacity aid (if qualified) will go up in 2017 because of the formula results factor from 2.75 to 3.5. Transportation supplement (if qualified) will go up in 2017 because of the formula results factor from 35 students per square mile to 50. PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 12
Residential Values In 2015, 19 counties are facing triennial updates. ODT has released the recommendations and tentative results for residential property for these 19 counties. The table below shows the recommendations and tentative results. For districts located in any of the 19 counties, the tentative results will be helpful in forecasting changes to values in tax year 2015, collected in 2016. PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 13
The $1,388 per acre in 2015 represents an increase of 93 percent over the $719 in 2012. While this is lower growth than was seen in the last two years (2013 and 2014), it is still substantial. But remember, this is the average growth rate for CAUV land value only. It will not be the growth rate for agricultural buildings or agricultural land that is not a part of CAUV. PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 14
Formula, Guarantee, Cap? PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 15
Guarantee? Cap? Outside of Cap? PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 16
Summary Monitor Head Count and Wealth Indicators Review categorical funding cut-offs. Know the district s valuation and enrollment trends Review LSC Simulations to FY 2015 SFPR line-by-line See http://www.pfrcfo.com/funding-sim-compare-to-2015-ms/ PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 17
The Public Finance Resources Team Matt Bunting, Consultant, has over 25 years of experience in the public finance sector. This includes 15 plus years as a school district treasurer, and 11 years with the Auditor of State where he led financial, legal compliance, and Federal single audits of government entities. Matt has served as interim school treasurer several times, as well as worked with Ernie and Stacy to test their forecasting software and instruct at their yearly seminars. He holds an Associates Degree in Accounting from Hocking College, and is a Certified Government Financial Manager. Ryan Ghizzoni, Consultant, began his career with the Auditor of State s Office and has served as a school district treasurer for the past 10 years. During his career, he has been the recipient of six Association of School Business Officials International Meritorious Budget Awards and was the recipient of the Ohio Association of School Business Officials 2011 Outstanding Treasurer of the Year Award. Ryan holds a Bachelors of Business Administration from the Youngstown State University, and is a Certified Administrator of School Finance and Operations. Debra Hoelzle, Chief Operations Officer, provides direct services to clients, and oversees the day-to-day operations of PFR. She brings with her operational experience from both the public and private sectors, including a school district and multiple corporations in the financial services industry. Debra holds her Masters of Business Administration from Ohio University, and her Bachelors of Science in Business Administration from The Ohio State University. Stacy Overly, Consultant, provides direct financial services to clients. He has over 20 years of experience serving as school district treasurer, including 15 plus years of developing financial forecasting tools, and providing instruction and training opportunities attended and used by over two hundred of Ohio s public school treasurers. Stacy works with clients to analyze trends and review local economic data to help determine a long-term operating strategy for the organization. He holds his Masters of Business Administration and his Bachelors of Business Administration in Finance from Ohio University. Mike Sobul, Consultant, brings 30 years of experience in public finance and tax analysis. Currently a school district treasurer, Mike spent nearly 25 years with the Ohio Department of Taxation where he led revenue forecasting efforts and provided analysis, training, and fiscal services to schools and local governments. Mike holds a Masters Degree in Public Policy from the University of Michigan and a Bachelors Degree in Economics and Political Science from Wittenberg University. Ernie Strawser, Consultant, provides direct services to our public finance clients. He has over 30 years of public finance experience as a CFO, consultant, and developer and instructor of financial forecasting techniques and tools which have been used by over two hundred Ohio school district CFOs. Ernie works with clients to facilitate their understanding of local financial results, trends, and strategies. He holds both a Masters of Science in Administration from Central Michigan University and a Bachelor of Science in Finance from Ohio University. PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 18
Services Five Year Forecast Software More than a compliance document Cash flow monitoring Modeling scenarios Graphics and dashboards Planning tool Consulting Maximize your effectiveness Financial consulting and cash flow monitoring Forecast review and analysis, what if planning Presentations to key stakeholders Special Projects Data Interpretation Data driven decision making Multi-year data sets to identify trends Benchmark analysis reports to see how you compare Graphics that are easy to read, understand and explain Data driven decision making PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 19
PFR Contact Information Ernie Strawser Consultant Public Finance Resources, Inc. PO Box 1822 Columbus, OH 43216 ernie@pfrcfo.com Phone: 614-732-5948 Debra Hoelzle Chief Operating Officer Public Finance Resources, Inc. PO Box 1822 Columbus, OH 43216 debra@pfrcfo.com Phone: 614-732-5948 www.pfrcfo.com PUBLIC FINANCE RESOURCES: EMPOWERING THE PUBLIC'S FINANCIAL LEADERS 20